Question
There were58,000 shares of common stock outstanding in Johannesson&Johannesson on January 1, 2021. On April 1, 2021, Johannesson&Johannesson issued an additional 28,000 shares of common
There were58,000 shares of common stock outstanding in Johannesson&Johannesson on January 1, 2021. On April 1, 2021, Johannesson&Johannesson issued an additional 28,000 shares of common stock. The firm had outstanding and fully vested incentive stock options for 9,000 shares, exercisable at $11. These options had not been exercised. The market price of common stock at the end of the year was $21. The average market price of common stock over the year was $20. Johannesson&Johannesson's net income was $309,915 for 2021. Considering the above information, what diluted earnings per share should Johannesson&Johannesson report (rounded)?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started